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2016 (7) TMI 1209 - AT - Service TaxExport of services or not - place of performance is in India - Business Auxiliary Service (BAS) and Business Support Service - services were provided to foreign customers - manpower recruitment or supply agency service - Held that:- when the person on whose instructions the services, in question, has been provided and is located abroad, the destination of services, in question, has to be treated abroad. The destination has to be decided on the basis of place of consumption, not the place of performance of service in case of Business Auxiliary Service - the impugned order regarding service tax liability of the appellant on these services is not legally sustainable. Regarding manpower recruitment and supply agency service - deputation of employees - Held that:- The reimbursement amount paid by the appellant to the foreign companies is relating to the cost of salaries and wages of the employees working under the appellant. In CCE vs. Computer Sciences Corporation India Pvt. Ltd.(2014 (11) TMI 125 - ALLAHABAD HIGH COURT) the Tribunal held that for tax purposes the service provided must be by a manpower recruitment agency and such a service has to be in relation to supply of manpower. In CCE vs. Arvind Mills Ltd. (2014 (4) TMI 132 - GUJARAT HIGH COURT), the Hon’ble Gujarat High Court held that deputation of employees from one company to another does not involve profit or finance benefit there is no relationship of agency and client involved in such deputation. In Volkswagen India Pvt. Ltd. vs. CCE (2013 (11) TMI 298 - CESTAT MUMBAI) the Tribunal held when the global employees working under the Indian company are working as their employees and having employee employer relationship there is no supply of manpower service and no tax liability arises. Demand set aside - Decided in favor of assessee.
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